A new developer is taking over an “extremely troubled” planned housing development in northeast Palm Springs, aiming to kickstart building on the long-vacant site of an old golf course.
With neighbors frustrated with what they see as the empty promises of former owner PS Country Club LLC, Irvine-based SunCal is stepping in on the roughly 126-acre project known as Serena Park on the site of the old Palm Springs Country Club golf course.
First approved by the city in 2016, development of the property failed to move forward for years. In 2021, the city approved a revised performance plan, but the developer blamed the COVID-19 pandemic for the lack of progress. After paying only $500,000 of the $3 million development fee, PS Country Club LLC was declared in default by the city in 2022.
Now, the current owner has entered escrow to sell the property to SunCal, which should become official when an amended development agreement is approved on second reading by the city council in the upcoming weeks.
SunCal, which calls itself one of the largest real estate development companies in the United States, believes it can be the company to finally bring 386 residential units to the troubled area.
“We’re excited about this particular project because we love Palm Springs,” said Fernando Dutra, vice president of development for PNG1 LLC, the subsidiary of SunCal developing the project locally. “We think that Palm Springs is a fantastic community. And we wouldn’t bring our investors’ monies into this community unless we felt confident we can: A, add value to the existing community. And B, bring a product to Palm Springs that everybody can be proud of.”
Dutra spoke following a meeting of the Palm Springs City Council last week in which the sale and an updated development agreement was initially approved. During the meeting, SunCal representatives committed to cleaning up the blighted property while it pursues entitlements for specific lot plans. Once those entitlements have been obtained, builders can begin construction.
But some neighbors remain skeptical of a project that has been stalled for years.
“The question that all of them are asking us is why should we believe this developer when we could not believe the last one?” Councilmember Lisa Middleton said during the city council meeting.
Dutra countered by pointing to resources available to SunCal, which he said was immediately ready to fund the necessary improvements.
The city has levied a $3.2 million fee on top of the $500,00 already paid. That creates a powerful incentive for SunCal to get shovels in the ground and houses sold, the company argues.
Still, only time will tell if this developer can bring the necessary wherewithal to complete the project, which is north of Vista Chino and west of Gene Autry Trail.
“We’ve been down this road before,” Middleton said. “Frequently it is the new ownership coming in that makes all the difference in the world. We hope that’s the case this time. But if it’s not, the leash is going to be very short.”
Sam Morgen covers the city of Palm Springs for The Desert Sun. Reach him at [email protected].
This article originally appeared on Palm Springs Desert Sun: Long-delayed plan for 386 homes in Palm Springs revived
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